# Mr Kipling maker Premier Foods to stop price hikes this year
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-18
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Premier Foods vows no more price hikes in fiscal 2024
Meta Description: Premier Foods, maker of Mr Kipling cakes, announces no further price increases for fiscal 2024 after profit beat in 2023. CEO confirms slowdown in rising costs.
URL: https://financedigest.com/mr-kipling-maker-premier-foods-to-stop-price-hikes-this-yearhtml

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# Mr Kipling maker Premier Foods to stop price hikes this year

By Radhika Anilkumar

(Reuters) -Premier Foods said on Thursday it does not expect further prices hikes in fiscal 2024 after it posted a beat in profit for 2023 aided by price increases and cost-cutting measures.

“We have passed the peak and it does look like we are not going to see prices rising as quickly anymore. We don’t expect to increase our prices any further this year,” [CEO Alex](https://www.financedigest.com/retired-ceo-alex-a-molinaroli-reveals-his-morning-rituals-and-the-importance-of-staying-informed.html "Retired CEO Alex A. Molinaroli Reveals His Morning Rituals and the Importance of Staying Informed") Whitehouse said in a media call.

[Shares in the maker](https://www.financedigest.com/sports-nutrition-market-share-revenue-and-average-worth-by-makers-shared-in-an-exceedingly-latest-analysis-report.html "Sports Nutrition Market SHARE, REVENUE, AND AVERAGE WORTH BY MAKERS SHARED IN AN EXCEEDINGLY LATEST ANALYSIS REPORT") of Mr Kipling cakes and OXO cubes were up 4.6% at 135.6 pence at 0900 GMT.

The grocery sector has been under [pressure from elevated costs](https://www.financedigest.com/asias-factory-activity-weakens-on-global-slowdown-cost-pressures.html "Asia’s factory activity weakens on global slowdown, cost pressures") and high inflation, resulting in tense discussion with food producers and supermarkets.

Belgium’s Colruyt said last week there was a lack of Mondelez products, such as Milka chocolate and Lu and Oreo biscuits at its supermarkets, with supplies [halted amid](https://www.financedigest.com/musk-halts-twitters-coveted-blue-check-amid-proliferation-of-imposters.html "Musk halts Twitter’s coveted blue check amid proliferation of imposters") a dispute over price increases by the food producer.

[Strategic partnerships](https://www.financedigest.com/sharespost-announces-strategic-partnership-with-leading-blockchain-advisory-firm-satis-group.html "SharesPost Announces Strategic Partnership with Leading Blockchain Advisory Firm Satis Group") with supermarkets have made conversations on pricing a little easier for the company, Whitehouse said.

Premier [Foods sells a range of products](https://www.financedigest.com/why-are-commercial-food-products-manufacturers-adopting-insect-growth-regulators.html "Why are Commercial Food Products Manufacturers Adopting Insect Growth Regulators") — from plain flour to cakes and cooking sauces to quick meals — through supermarkets, convenient stores, and discounters as well as other channels.

The company, which raised its dividend for the year by 20% to 1.44 pence, posted a 13% jump in adjusted profit before tax for the year ended April 1 to 137.2 [million pounds](https://www.financedigest.com/uks-nationwide-to-pay-340-million-pounds-to-customers-after-profit-leap.html "UK’s Nationwide to pay 340 million pounds to customers after profit leap") ($173.16 million), while analysts on average forecast 135 million pounds.

[“Pricing action](https://www.financedigest.com/uk-energy-ceos-urge-government-action-on-horrific-price-surge.html "UK energy CEOs urge government action on ‘horrific’ price surge") has already been implemented, and so the focus turns to optimising performance and driving volumes,” analysts at Peel Hunt said in a note.

The [company retained](https://www.financedigest.com/companies-are-empowered-to-retain-control-with-alternative-routes-to-liquidity.html "Companies are empowered to retain control with alternative routes to liquidity") its 2023-2024 outlook, while it did not provide specific figures.

($1 = 0.7923 pounds)

(Reporting by Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips and Sharon Singleton)


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